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Aust share market trading lower

Kim Christian

The Australian share market has closed lower, despite receiving a lift from the banks in afternoon trade.

IG Market analyst Evan Lucas said a mixed performance in the United States had weighed on investors' minds, but the local market finished the week in a better position than expected.

"What we saw over in the US has carried through," he said.

"We headed down quite hard this morning but that has reversed, with the banks turning around as the RBA's statement of monetary policy showed the yield trade would continue to hold true."

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The major banks reacted positively to the RBA's commentary released late Friday morning, with indications showing rates will be on hold for at least another five months.

However, Mr Lucas said ANZ Bank going ex-dividend had been a drag on the market.

Overnight on Wall Street, shares finished mostly lower as investors assessed the latest batch of US company earnings and sold utility and energy stocks.

In the banking sector on Friday ANZ fell $1.08 to $32.72 as it traded ex-dividend but Commonwealth Bank was 41 cents higher at $79.50, Westpac lifted four cents to $34.94, and National Australia Bank added 24 cents to $34.38.

In the resources sector, BHP Billiton fell 31 cents to $37.34, Rio Tinto dumped 51 cents to $60.95, and Fortescue Metals lost one cent to $4.81.